Soybean Futures Lifted by Chinese Demand

Earlier this month we mentioned weather concerns in the South American soybean growing region…well now there is more of a concern as recent rains are reported to have missed the driest parts of Argentina.  Soybean futures are also said to be rallying on improving demand from China.

The USDA reported US exporters recently sold 120,000 metric tons of soybeans to China.  Soybean futures are up big today on the combination of this news, and up .37c per bushel as of this writing.

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current soybean futures situation, “China is buying soybeans again as they enter their  new year.  If we see increased usage, and decreased crop yield, we may find ourselves in a real shortage.”  Moreno added, “In my opinion, soybean (futures) may be going higher.”

Soybean futures had just begun a new-found down-trend, but after today’s rally it appears as if it is a resumption of the longer-term UP trend which seasonally doesn’t begin until later next month.  I’ll be on the sidelines of soybean futures until a clearer picture unfolds.

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